For years I have held a strong belief that, in the consulting and training business, the most dangerous foe is not one of our competitors. Instead, our greatest competition comes from inaction; clients deciding to stay with the status quo, not hire anyone, or delay their training initiative altogether. Too often, we lose the business to “no one” rather than our arch rivals. As the economy has worsened, this competitor has become even more prolific. As I wrote in a previous blog, “flat is the new double digit growth” for many, but “no one” is experiencing record growth!
It is obvious that “no one” has expanded its competitive presence in many other industries as well. Any industry where growth comes from zero sum game competition, (if you win the business another similar company is losing it) is being severely impacted by the specter of “no one.” In a tough economy, customers become risk averse, preferring to ride the status quo. That makes it harder than ever for product/service providers to gain market share unless they are willing to dramatically lower the price point. I call that the “me too for less” price point.
Any industry viewed as discretionary spending is being impacted like never before by the competitive ghost of “no one.” Just look at the travel industry. Even such venerable travel destinations as Hawaii are posting a 16% drop in room occupancy over the same period in ‘08. The car industry’s woes have certainly been well documented, as have most industries that depend upon gaining access to disposable income. Right now, “no one” is holding the disposable income wallet.
So how do we combat the formidable competition of inaction and grow our business through these lean times? As stated above, lowering your price might help… in some cases… for the short term; but it’s a dangerous strategy at best. In many industries the main driver isn’t price anyway; because the customer simply doesn’t have the budget regardless of the “deal” being offered. It is a formidable challenge to be sure.
I wish I had an easy answer to the threat of “no one” because, in my business, I’ve been going up against this adversary for years. The only solution I have found is to hone in on the position you desire in your market, and commit completely to owning that space. Get crystal clear on your organization’s strengths and competitive advantages and make sure everyone in your organization is aligned to your value proposition. Then go out and work your butt off. It isn’t glamorous, but it is effective. I have found that while “no one” is a tough competitor, it is perpetually plagued with low levels of customer loyalty and is easily worn down if you just keep working hard at selling.
Chuck Terry is the Executive Vice President and CSO of Carew International and is regular contributor to Carew’s blog – Executive Insights
Carew International is a leader in sales training and leadership development; specializing in comprehensive, proven training programs for sales, sales management and customer service excellence. For over 30 years, Carew has earned its reputation of delivering increased productivity and profitability to our valued clients world wide.
